The Finance & Leasing Association (FLA) has today reported new figures showing that consumer car finance new business volumes fell in December 2023 by 8% compared with the same month in 2022.
The corresponding value of new business was also 8% lower over the same period. In 2023 as a whole, new business by value and volume decreased by 5% and 6% respectively, compared with 2022.
The consumer new car finance market reported a fall in new business in December of 12% by value and 13% by volume compared with the same month in 2022. In 2023 as a whole, new business volumes in this market were 6% lower than in 2022.
The consumer used car finance market reported a fall in new business in December of 5% both by value and volume compared with the same month in 2022. In 2023 as a whole, new business volumes in this market were 6% lower than in 2022.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The consumer car finance market reported a modest fall in both the value and volume of new business in 2023. The value of new business in this market at almost £39 billion was the second highest on record.
“Consumer confidence has begun to increase as the outlook for their personal finances has improved. Nevertheless, consumer spending is expected to remain subdued this year and our latest forecasts suggest that the point of sale consumer car finance market is likely to see new business grow by around 2% in 2024.”
Cars bought on finance by consumers through the point of sale
| New business | Dec 2023 | % change on prev. year | 3 months to Dec 2023 | % change on prev. year | 12 months to Dec 2023 | % change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
| Value of advances (£m) | 1,001 | -12 | 3,666 | -5 | 16,793 | -2 |
| Number of cars | 36,000 | -13 | 133,595 | -9 | 640,083 | -6 |
| Used cars | ||||||
|
Value of advances (£m) |
1,252 |
-5 | 4,671 | -6 | 22,000 | -7 |
| Number of cars | 84,078 | -5 | 314,411 | -6 | 454,395 | -6 |
| Total cars | ||||||
|
Value of advances (£m) |
2,254 |
-8 | 8,337 | -6 | 38,794 | -5 |
| Number of cars | 120,078 | -8 | 447,706 | -7 | 2,094,478 | -6 |
Cars bought on finance by businesses
| New business | Dec 2023 | % change on prev. year | 3 months to Dec 2023 | % change on prev. year | 12 months to Dec 2023 | % change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
| Number of cars | 32,765 | 9 | 100,317 | 25 | 375,603 | 39 |
| Used cars | ||||||
| Number of cars | 4,560 | 22 | 16,378 | -3 | 62,470 | -27 |
